KARAT PACKAGING INC (KRT) Stock Fundamental Analysis
NASDAQ:KRT - US48563L1017 - Common Stock
25.16 USD
-0.12 (-0.47%)
Taking everything into account, KRT scores 6 out of 10 in our fundamental rating. KRT was compared to 50 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making KRT a very profitable company, without any liquidiy or solvency issues. KRT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KRT was profitable.
KRT had a positive operating cash flow in the past year.
Each year in the past 5 years KRT has been profitable.
Each year in the past 5 years KRT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.99%, KRT belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
KRT has a Return On Equity of 20.57%. This is in the better half of the industry: KRT outperforms 76.00% of its industry peers.
With an excellent Return On Invested Capital value of 13.04%, KRT belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
KRT had an Average Return On Invested Capital over the past 3 years of 12.65%. This is above the industry average of 9.98%.
The 3 year average ROIC (12.65%) for KRT is below the current ROIC(13.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.99% | ||
| ROE | 20.57% | ||
| ROIC | 13.04% |
ROA(3y)10.43%
ROA(5y)10.19%
ROE(3y)19%
ROE(5y)25.59%
ROIC(3y)12.65%
ROIC(5y)12.66%
1.3 Margins
Looking at the Profit Margin, with a value of 7.25%, KRT is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
KRT's Profit Margin has improved in the last couple of years.
The Operating Margin of KRT (9.70%) is better than 70.00% of its industry peers.
In the last couple of years the Operating Margin of KRT has grown nicely.
KRT has a Gross Margin of 39.18%. This is in the better half of the industry: KRT outperforms 72.00% of its industry peers.
KRT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.7% | ||
| PM (TTM) | 7.25% | ||
| GM | 39.18% |
OM growth 3Y14.76%
OM growth 5Y30.03%
PM growth 3Y7.49%
PM growth 5Y56.48%
GM growth 3Y9.52%
GM growth 5Y7.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KRT is still creating some value.
The number of shares outstanding for KRT has been increased compared to 1 year ago.
Compared to 5 years ago, KRT has more shares outstanding
Compared to 1 year ago, KRT has an improved debt to assets ratio.
2.2 Solvency
KRT has an Altman-Z score of 4.39. This indicates that KRT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.39, KRT is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
The Debt to FCF ratio of KRT is 1.08, which is an excellent value as it means it would take KRT, only 1.08 years of fcf income to pay off all of its debts.
KRT has a Debt to FCF ratio of 1.08. This is amongst the best in the industry. KRT outperforms 88.00% of its industry peers.
KRT has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.30, KRT is doing good in the industry, outperforming 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 4.39 |
ROIC/WACC1.35
WACC9.65%
2.3 Liquidity
A Current Ratio of 2.68 indicates that KRT has no problem at all paying its short term obligations.
KRT's Current ratio of 2.68 is fine compared to the rest of the industry. KRT outperforms 70.00% of its industry peers.
KRT has a Quick Ratio of 1.40. This is a normal value and indicates that KRT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.40, KRT is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.75% over the past year.
Measured over the past years, KRT shows a very strong growth in Earnings Per Share. The EPS has been growing by 75.29% on average per year.
The Revenue has been growing slightly by 8.00% in the past year.
Measured over the past years, KRT shows a quite strong growth in Revenue. The Revenue has been growing by 13.45% on average per year.
EPS 1Y (TTM)3.75%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%16.33%
Revenue 1Y (TTM)8%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%10.11%
3.2 Future
Based on estimates for the next years, KRT will show a small growth in Earnings Per Share. The EPS will grow by 7.51% on average per year.
KRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y-2.67%
EPS Next 2Y5.55%
EPS Next 3Y7.51%
EPS Next 5YN/A
Revenue Next Year9.49%
Revenue Next 2Y8.08%
Revenue Next 3Y7.92%
Revenue Next 5Y5.98%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.16, the valuation of KRT can be described as correct.
82.00% of the companies in the same industry are more expensive than KRT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KRT to the average of the S&P500 Index (27.13), we can say KRT is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.69, which indicates a correct valuation of KRT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRT indicates a somewhat cheap valuation: KRT is cheaper than 74.00% of the companies listed in the same industry.
KRT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
86.00% of the companies in the same industry are more expensive than KRT, based on the Enterprise Value to EBITDA ratio.
KRT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KRT is cheaper than 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.38 | ||
| EV/EBITDA | 7.54 |
4.3 Compensation for Growth
KRT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y5.55%
EPS Next 3Y7.51%
5. Dividend
5.1 Amount
KRT has a Yearly Dividend Yield of 7.02%, which is a nice return.
Compared to an average industry Dividend Yield of 1.69, KRT pays a better dividend. On top of this KRT pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, KRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
5.2 History
KRT has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
105.27% of the earnings are spent on dividend by KRT. This is not a sustainable payout ratio.
DP105.27%
EPS Next 2Y5.55%
EPS Next 3Y7.51%
NASDAQ:KRT (9/2/2025, 9:54:31 AM)
25.16
-0.12 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners26.2%
Inst Owner Change23.29%
Ins Owners57.69%
Ins Owner Change-14.94%
Market Cap505.46M
Analysts76.67
Price Target32.13 (27.7%)
Short Float %1.23%
Short Ratio1.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
Yearly Dividend1.55
Dividend Growth(5Y)N/A
DP105.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.69%
Min EPS beat(2)-5.94%
Max EPS beat(2)15.32%
EPS beat(4)1
Avg EPS beat(4)-4.94%
Min EPS beat(4)-19.5%
Max EPS beat(4)15.32%
EPS beat(8)2
Avg EPS beat(8)-10.63%
EPS beat(12)4
Avg EPS beat(12)6.25%
EPS beat(16)6
Avg EPS beat(16)3.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)0.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)0.53%
Revenue beat(8)1
Avg Revenue beat(8)-1.59%
Revenue beat(12)1
Avg Revenue beat(12)-2.27%
Revenue beat(16)2
Avg Revenue beat(16)-2.11%
PT rev (1m)-10%
PT rev (3m)0%
EPS NQ rev (1m)-20.65%
EPS NQ rev (3m)-25.51%
EPS NY rev (1m)-1.85%
EPS NY rev (3m)-3.93%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)2.45%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 13.69 | ||
| P/S | 1.14 | ||
| P/FCF | 11.38 | ||
| P/OCF | 11.18 | ||
| P/B | 3.24 | ||
| P/tB | 3.32 | ||
| EV/EBITDA | 7.54 |
EPS(TTM)1.66
EY6.6%
EPS(NY)1.84
Fwd EY7.31%
FCF(TTM)2.21
FCFY8.79%
OCF(TTM)2.25
OCFY8.94%
SpS22
BVpS7.76
TBVpS7.57
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.99% | ||
| ROE | 20.57% | ||
| ROCE | 17.05% | ||
| ROIC | 13.04% | ||
| ROICexc | 16.86% | ||
| ROICexgc | 17.19% | ||
| OM | 9.7% | ||
| PM (TTM) | 7.25% | ||
| GM | 39.18% | ||
| FCFM | 10.05% |
ROA(3y)10.43%
ROA(5y)10.19%
ROE(3y)19%
ROE(5y)25.59%
ROIC(3y)12.65%
ROIC(5y)12.66%
ROICexc(3y)15.6%
ROICexc(5y)14.51%
ROICexgc(3y)15.92%
ROICexgc(5y)14.83%
ROCE(3y)16.55%
ROCE(5y)16.56%
ROICexcg growth 3Y16.55%
ROICexcg growth 5Y29.66%
ROICexc growth 3Y16.65%
ROICexc growth 5Y29.13%
OM growth 3Y14.76%
OM growth 5Y30.03%
PM growth 3Y7.49%
PM growth 5Y56.48%
GM growth 3Y9.52%
GM growth 5Y7.47%
F-Score7
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 4% | ||
| Cap/Sales | 0.18% | ||
| Interest Coverage | 22.11 | ||
| Cash Conversion | 72.12% | ||
| Profit Quality | 138.56% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 4.39 |
F-Score7
WACC9.65%
ROIC/WACC1.35
Cap/Depr(3y)16.22%
Cap/Depr(5y)87%
Cap/Sales(3y)0.52%
Cap/Sales(5y)2.54%
Profit Quality(3y)142.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.75%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%16.33%
EPS Next Y-2.67%
EPS Next 2Y5.55%
EPS Next 3Y7.51%
EPS Next 5YN/A
Revenue 1Y (TTM)8%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%10.11%
Revenue Next Year9.49%
Revenue Next 2Y8.08%
Revenue Next 3Y7.92%
Revenue Next 5Y5.98%
EBIT growth 1Y13.6%
EBIT growth 3Y20.59%
EBIT growth 5Y47.51%
EBIT Next Year36.07%
EBIT Next 3Y15.75%
EBIT Next 5YN/A
FCF growth 1Y-32.1%
FCF growth 3Y118.66%
FCF growth 5YN/A
OCF growth 1Y-33.79%
OCF growth 3Y76.82%
OCF growth 5YN/A